Hut 8 Operations Update for February 2024

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The Hut 8 team is making progress building out Ionic Digital’s Cedarvale site in Ward County, Texas, which is designed to reach approximately 240 MW of operating capacity.

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27 EH/s and 926 MW under management as Company continues to increase operating scale and execute restructuring and optimization initiatives

Strategic initiatives and site buildouts in Texas advancing

New treasury strategy and 9,110 Bitcoin on balance sheet gives Hut 8 significant optionality leading into the halving

MIAMI, March 05, 2024 (GLOBE NEWSWIRE) — Hut 8 Corp. (Nasdaq | TSX: HUT), (“Hut 8” or the “Company”) one of North America’s largest Bitcoin miners and energy infrastructure operators, is proud to share its operations report for February 2024.

	February 2024	January 2024
Total energy capacity under management¹	926 MW	839 MW
Total deployed miners under management²	258.2k	214.7K
Total hashrate under management³	27.0 EH/s	22.3 EH/s
Self-Mining⁴
Deployed miners⁵	74.1k	73.1K
Deployed hashrate⁶	7.2 EH/s	7.2 EH/s
Bitcoin produced	292 BTC	339 BTC
Bitcoin on balance sheet⁷	9,110 BTC	9,116 BTC

Managed Services⁸
Energy capacity under management	767 MW	680 MW
Deployed miners under management ⁹	218.6k	178.7K
Hashrate under management	23.4 EH/s	19.0 EH/s

Hosting
Deployed miners under management ⁹	76.7k	73.9K
Hashrate under management	8.7 EH/s	8.4 EH/s

Notes:
(1) Includes all Self-Mining, Managed Services, and Hosting infrastructure, including 100% of the energy capacity at the Echo site (King Mountain, TX).
(2) Includes all miners that are racked with power and networking, rounded to the nearest 100, in Self-Mining, Managed Services, and Hosting infrastructure with power and networking, including all miners at the Echo site (King Mountain, TX).
(3) Includes all Self-Mining, Managed Services, and Hosting hashrate, including 100% of the hashrate at the Echo site (King Mountain, TX).
(4) Self-Mining operations for Hut 8 Corp. include all operations at the Echo site (King Mountain, TX).
(5) Deployed miners are defined as those physically racked with power and networking, rounded to the nearest 100.
(6) Indicates the target hashrate of all deployed miners.
(7) As of month-end.
(8) The Managed Services figures reflected in this table include the Self-Mining and Hosting metrics from the sites where Hut 8’s Managed Services business is an additional service layer in the operation of the site (at Charlie, Delta, Echo, and Hotel – site details below). As a result, the sum of the Self-Mining, Managed Services, and Hosting numbers will not add up to the “Total energy capacity under management”, “Total deployed miners under management”, and “Total hashrate under management” figures that are also reflected in the table.
(9) Miners are rounded to the nearest 100.

“With the goal of best positioning Hut 8 to create shareholder value ahead of and following the halving, we advanced a number of strategic initiatives designed to increase our operating scale and optimize our metrics in February,” said Asher Genoot, CEO of Hut 8. “We made excellent progress in building out our new 63 MW self-mining site in Culberson County, Texas and at Ionic Digital’s 240 MW Cedarvale site in Ward County, Texas. We also announced a new treasury strategy that will allow us to deploy our stack to strategically grow the business and we relentlessly focused on improving our operations.”

Highlights:

Hut 8 began providing managed services to Ionic Digital in February and is installing its purpose-built software and transition systems from the current third-party provider at Ionic’s four sites in Texas totaling 87 MW. The contract is reflected in the operations results above.
At Ionic Digital’s Cedarvale site in Ward County, Texas, the Hut 8 team has received the first eight vertical exhaust units at site and is making progress on electrical work for the initial 35 MW phase of construction.
The operations and asset management teams continued to conduct preventative maintenance at the Echo site at King Mountain, Texas and optimize the fleets at the Foxtrot and Golf sites in Alberta by moving and conducting targeted repairs on miners to ensure maximum efficiency ahead of the halving.
A go-forward plan for the Golf site in Drumheller, Alberta will be finalized and communicated shortly.
Grading is complete at Hut 8’s new 63 MW site in Culberson County, Texas and the team has finalized the electrical engineering package and begun taking delivery of containers and transformers at the site.
Despite volatility in energy prices in February, the team utilized mutually beneficial terms in the Electric Service Agreement covering its Medicine Hat site, which provides the opportunity for both parties to benefit from high prices in the Alberta power market while helping to stabilize the electrical grid.
Hut 8’s digital asset mining geographical footprint includes the following sites as of March 1, 2024:

		Owner	Energy Capacity	Self- Mining	Managed Services	Hosting
Alpha	Niagara Falls, NY	Hut 8	50 MW	Yes		Yes
Charlie	Kearney, NB	Managed¹	100 MW	Yes	Yes
Delta	Granbury, TX	Managed¹	300 MW	Yes	Yes
Echo	King Mountain, TX	Joint Venture²	280 MW	Yes	Yes	Yes
Foxtrot	Medicine Hat, AB	Hut 8	67 MW	Yes
Golf	Drumheller, AB	Hut 8	42 MW	Yes
Hotel 1	Midland, TX	Managed¹	25 MW		Yes
Hotel 2	Midland, TX	Managed¹	20 MW		Yes
Hotel 3	Midland, TX	Managed¹	30 MW		Yes
Hotel 4	Midland, TX	Managed¹	12 MW		Yes

Notes:
(1) Hut 8’s Managed Services subsidiaries lead all aspects of site operations, including accounting, curtailment, and customer relations at the Charlie and Delta sites, which are owned by a third party, and the Hotel 1-4 sites, which are owned by Ionic Digital. The Managed Services subsidiaries also lead all aspects of site operations at the Echo site.
(2) The Company has a 50% membership interest in the Echo site. The remaining 50% membership interest is held by a Fortune 200 renewable energy producer.

About Hut 8
Hut 8 Corp. is a Bitcoin miner and energy infrastructure operator with self-mining, hosting, managed services, and traditional data center operations spanning eleven sites across North America. Headquartered in Miami, Florida, Hut 8 Corp. operates six Bitcoin mining, hosting, and Managed Services sites in Alberta, New York, Nebraska, and Texas and five high performance computing data centers in British Columbia and Ontario. For more information, visit www.hut8.com and follow us on X (formerly known as Twitter) at @Hut8Corp.

Cautionary Note Regarding Forward–Looking Information
This press release includes “forward-looking information” and “forward-looking statements” within the meaning of Canadian securities laws and United States securities laws, respectively (collectively, “forward-looking information”). All information, other than statements of historical facts, included in this press release that address activities, events or developments that Hut 8 and New Hut expect or anticipate will or may occur in the future, including such things as future business strategy, competitive strengths, goals, expansion and growth of the business, operations, plans and other such matters is forward-looking information. Forward-looking information is often identified by the words “may”, “would”, “could”, “should”, “will”, “intend”, “plan”, “anticipate”, “allow”, “believe”, “estimate”, “expect”, “predict”, “can”, “might”, “potential”, “predict”, “is designed to”, “likely” or similar expressions. Specifically, such forward-looking information included in this press release includes statements relating to the Company’s increasing operating scale, restructuring and optimization initiatives, new treasury strategy, projects with Ionic Digital, and plans to monetize the four power generation facilities in Ontario.

Statements containing forward-looking information are not historical facts, but instead represent management’s expectations, estimates and projections regarding future events based on certain material factors and assumptions at the time the statement was made. While considered reasonable by Hut 8 as of the date of this press release, such statements are subject to known and unknown risks, uncertainties, assumptions and other factors that may cause the actual results, level of activity, performance or achievements to be materially different from those expressed or implied by such forward-looking information, including but not limited to, security and cybersecurity threats and hacks; malicious actors or botnet obtaining control of processing power on the Bitcoin network; further development and acceptance of the Bitcoin network; changes to Bitcoin mining difficulty; loss or destruction of private keys; increases in fees for recording transactions in the Blockchain; erroneous transactions; reliance on a limited number of key employees; reliance on third party mining pool service providers; regulatory changes; classification and tax changes; momentum pricing risk; fraud and failure related to digital asset exchanges; difficulty in obtaining banking services and financing; difficulty in obtaining insurance, permits and licenses; internet and power disruptions; geopolitical events; uncertainty in the development of cryptographic and algorithmic protocols; uncertainty about the acceptance or widespread use of digital assets; failure to anticipate technology innovations; the COVID19 pandemic, climate change; currency risk; lending risk and recovery of potential losses; litigation risk; business integration risk; changes in market demand; changes in network and infrastructure; system interruption; changes in leasing arrangements; failure to achieve intended benefits of power purchase agreements; potential for interrupted delivery, or suspension of the delivery, of energy to mining sites and other risks related to the digital asset mining and data centre business. For a complete list of the factors that could affect Hut 8, please see the “Risk Factors” section of Hut 8’s Registration Statement on Form S-4 dated November 7, 2023, available under the Company’s EDGAR profile at www.sec.gov, and Hut 8’s other continuous disclosure documents which are available under the Company’s SEDAR+ profile at www.sedarplus.ca and EDGAR profile at www.sec.gov.

Hut 8 Corp. Investor Relations
Sue Ennis
sue@hut8.io

Hut 8 Corp. Media Relations
Erin Dermer
erin.dermer@hut8.io

The Hut 8 team is making progress building out Ionic Digital’s Cedarvale site in Ward County, Texas, which is designed to reach approximately 240 MW of operating capacity.